It takes 10X thinking and 10X actions to build generational wealth. But how do you do it?

An important thing I want people to understand is that you shouldn’t aim to be rich. You need to aim to be financially free.

A financial legacy that will provide for your family for years to come is a big part of that. Even though a lot of people know how to earn money, they don’t know how to build generational wealth. 

Generational wealth isn’t about your kids becoming freeloaders. It’s about giving them stability and options for them to do great things. Let’s go over how you can give them those opportunities. 

Don’t save — Invest

In the entire history of this entire planet, no one has saved their way into generational wealth.

Every person who has reached that elite status made investments of some variety. Warren Buffet, John D. Rockefeller, and Sam Walton are just a few of the names that come to mind.

All of these entrepreneurs invested once they made substantial amounts of money. That’s why their kids and grandkids enjoy the lives they do today. 

Every year, I go broke investing. What I mean by that is that until that point, I build up a chunk of cash that I can put into a big investment. (I like hard assets like multifamily real estate.)

This leaves me nothing in savings. However, these investments provide passive income that will continue as long as I own that asset.

Then, I can pass them down to my children. 

“The most important step a person can take to build generational wealth is to invest, invest, and invest – as early and as much as possible.”

— Leah Bourne, Managing Editor for The Money Manual

Do the math to build generational wealth 

The first thing I told you was to invest, and to invest a lot.

Notice that I didn’t say to invest in just anything. I strictly adhere to Warren Buffet’s number one rule. 

“Never lose money.”

So, prior to investing that wad of cash, you have to crunch some numbers on the deal. Your due diligence is what is going to ensure the generational wealth that will take care of your family long after you are gone. 

Not all stocks are going to pay dividends. Not all real estate is going to cash flow. Do the homework. Your family will thank you for it. 

These are the basics of how to build generational wealth. It takes discipline and grit, but it can be done. We all want the best for ourselves and our families. That’s the reason we even take on these big goals and pursuits that seem impossible. 

I know you’ll be great. 

Grant Cardone  

Disclosure: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.

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Star of Discovery Channel’s “Undercover Billionaire,” Grant Cardone owns and operates seven privately held companies and a private equity real estate firm, Cardone Capital, with a multifamily portfolio of assets under management valued at over $4 billion. He is the Top Crowdfunder in the world, raising over $900 million in equity via social media. Known internationally as the leading expert on sales, marketing, and scaling businesses, Cardone is a New York Times bestselling author of 11 business books, including “The 10X Rule,” which led to Cardone establishing the 10X Global Movement and the 10X Growth Conference, now the largest business and entrepreneur conference in the world. The online business and sales educational platform he created, Cardone University, serves over 411,000 individuals and Forbes 100 corporate clients throughout the world. Voted the top Marketing Influencer to watch by Forbes, Cardone uses his massive 15 million plus following to give back via his Grant Cardone Foundation, a non-profit organization dedicated to mentoring underserved, at-risk adolescents in financial literacy, especially those without father figures.